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Microsoft 365 for business: which plan should you choose?

Business Basic, Standard, Premium or Apps for business? What each Microsoft 365 plan includes, when each one makes sense and how to mix licenses so you don’t overpay.

Microsoft 365 for business has four main plans for up to 300 users. The difference isn’t just price: it determines whether people get the desktop apps, whether they have business email, and whether the company can manage and secure its devices.

In this article
  1. Plan comparison
  2. Which one to choose
  3. You can mix plans
  4. After you sign up
  5. FAQ

Plan comparison

FeatureApps for businessBusiness BasicBusiness StandardBusiness Premium
Desktop Word, Excel, PowerPoint and Outlook (PC/Mac)YesNo (web and mobile only)YesYes
Business email (Exchange, 50 GB mailbox)NoYesYesYes
OneDrive (1 TB per user)YesYesYesYes
Teams, SharePointNoYes*Yes*Yes*
Device management (Intune)NoNoNoYes
Conditional Access (Entra ID P1)NoNoNoYes
Advanced protection (Defender for Business)NoNoNoYes
Email archiving and information protectionNoNoNoYes

* In some regions and offers, plans are sold in versions with and without Teams.

On plans with desktop apps, each user can install them on up to 5 PCs or Macs, 5 tablets and 5 phones.

Which one to choose

Business Basic — for people who work mostly in the browser or on their phone: email, Teams, files in OneDrive and SharePoint, and Office on the web. Good for field teams, customer service and users who only need email.

Business Standard — the most common plan in small and midsize businesses. Everything in Basic plus the full desktop apps, essential for advanced Excel, macros or large files.

Business Premium — everything in Standard plus the security and management layer: control over company laptops and phones, blocking access from untrusted locations or devices, business-grade endpoint protection with incident response, and data loss prevention. It’s the right fit for companies handling sensitive data or facing security requirements.

Apps for business — just the Office apps and OneDrive, with no business email. It makes sense when the company already has email with another provider.

You can mix plans

Yes. Users in the same company can have different licenses: for example, Business Basic for people who only need email and Business Standard or Premium for finance and management. This often cuts the total cost significantly.

After you sign up

  1. Add your company domain to Microsoft 365 and create the DNS records the setup wizard shows.
  2. Set up SPF, DKIM and DMARC so email doesn’t land in spam — see how to set up SPF, DKIM and DMARC.
  3. Turn on two-factor authentication for every user — see our two-factor authentication guide.
  4. Plan backups for mailboxes and files — the Microsoft 365 recycle bin has time limits. See the 3-2-1 backup rule.

FAQ

Does Business Basic include Word and Excel?

Yes, but only the web and mobile/tablet versions. The full Windows and Mac apps come with Business Standard, Premium and Apps for business.

What’s the difference between Microsoft 365 Personal/Family and the Business plans?

Home plans are for personal use and don’t include email on your company domain, centralized user administration or business security features.

Is Business Premium worth it for a small company?

If the company uses laptops outside the office, handles customer data or has already seen phishing attempts, yes: Premium bundles security tools that usually cost more when bought separately.

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TECHNOARTH Editorial Team

The TECHNOARTH newsroom: technology tutorials, guides, comparisons and news produced with AI assistance and checked against manufacturers’ official sources.